berlin - holborn assets property · 2019-06-17 · 15%, berlin housing market is also vastly more...

BERLIN: MACRO OVERVIEW 04

ECONOMY 06

EDUCATION 08

TECHNOLOGY SECTOR 10

INFRASTRUCTURE 12

HOUSING MARKET 14

THE DEVELOPMENT 16

AREA MAP 18

COMPARABLES MAP 20

SPECIFICATIONS 26

ILLUSTRATIVE RETURNS MODEL 27

DEVELOPER 30

DISCLAIMER 31

CONTENTS

BERLIN:MACRO OVERVIEW

3.63 million population as of 2018*

Witnessing significant population and employment growth, Berlin has matured over the last ten years.

In an economic, cultural, and political sense, the global city of Berlin has officially arrived.

* Latest data available

6 7

Sources: PwC, Bulwiengesa, Knight Frank, Berlin.de, Fast Company business magazine

ECONOMY ECONOMY

With a record-breaking employment rate and GDP growth of 20.7% (2011-2017), the upturn in Germany's economy makes it the undisputed economic centre of Europe.

GERMAN ECONOMY-

BERLIN ECONOMY-Berlin operates as Germany's centre for goverment, technology, education, and culture. Boasting a well-developed infrastructure, faster growing office workforce than London or Paris, and strong GDP growth, the city presents a striking case for investment.

Sources: PwC, EY, Urban Land Institute, Real Capital Analytics, Knight Frank

GROWTH CHAMPION-

GermanyAll other EU countries

German growth continues to outpace that of other European Union countries.

No.2 location for foreign direct investment (FDI) in Europe

(real GDP, 2008Q1=100)

GDP growth in 2017

3.1%

2.2% rise in Germany’s GDP in 2017 – the largest increase since 2011

Population of 87.2 million as of 2017 – 16% of Europe's total population

3.6% unemployment rate - a record low and far below the European average of 8.7%

PwC's best global city for investment in 2018

#1

working population in 2017 (+4.4% year-on-year)

1,395,000international citizens in 2017 – up from 650,000 in 2016

Over 700,000

Berlin's forecast population by 2035

4 millionLargest student city in Germany with

185,000 students

8 9

BERLIN

Tegel

Mitte

Dahlem

Karlshorst

Treptow-Köpenick

EINBECKER 47EINBECKER 47

3

4 12

EDUCATION

A STUDENT'S CITY -Berlin is Europe’s third most popular study destination, attracting students of all backgrounds and interests. Enticed by world-class universities and colleges offering free tuition, the city hosts 185,000 students annually.

40+ Higher education institutes in Berlin

1st Most affordable city for international students

6th Best city overall for international students

7th Top Student City

1.Humboldt University of Berlin Times World University Ranking: 67th33,000 students – 17% international students

4.Technical University of Berlin Times World University Ranking: 131st22,500 students – 22% international students

3.Free University of BerlinTimes World University Ranking: 104th35,000 students – 21% international students

2.Charité – University of Medicine BerlinTimes World University Ranking: 90th7,000 students – 19% international students

EDUCATION

10 11

TECHNOLOGY SECTOR

BERLIN’S GROWING TECH INDUSTRY -With high-profile start-ups and universities dotted across the city Berlin is, and will remain, Germany’s ‘laboratory’. Playing a leading global role in digital transformation and innovation, Berlin’s growing technology sector is attracting a significant number of students, young professionals, companies and investors to the capital.

USD3 billion 67% USD680 millionInvestment in the new

Siemens industrial and technology hub

'Siemensstadt'

Of Germany’s start-ups are

located in Berlin

Amount of venture capital put into start-

ups in 2017 alone

MEDIASPREE -Focused on creating a new home for entertainment and telecommunications companies, Mediaspree is one of Berlin's largest property investment projects to date. Located along the banks of the River Spree, the regeneration area is already proving attractive to both established firms as well as start-ups.

East Side Mall 37,800 sqm of rental space and 110 shops

The Mercedes-Benz Arena Entertainment venue with a 17,000-person capacity

Universal Music HQ

Stream Tower 90 m tall office building - main tenant online retailer Zalando

Coca-Cola / O2 World / The TV Dockyard

NOTABLE TENANCIES AND BUILDINGS WITHIN THE AREA INCLUDE

200m

MediaspreeEinbecker 47

Zalando Volkswagen Digital Lab

Porsche Digital Lab

Coca Cola

Universal Music HQ

KAYAK Technology Center

Volkswagen Digital Lab

Universal Music HQ

KAYAK Technology Center

Zalando

Porsche Digital Lab

Coca Cola

1 DAYA new start-up

is founded every day in Berlin

100,000New jobs to be created by tech

start-ups by 2020

#1Berlin offers the

highest post-graduate tech

salary in Europe

Einbecker 47 to Mediaspree

20min / 22min

TECHNOLOGY SECTOR

12 13

INFRASTRUCTURE

TRANSPORTATION -To accommodate Berlin’s growing number of international visitors and residents, the city is building an impressive new airport which is set to only increase the city’s profile and appeal.

Due to open in October 2020, the Berlin Brandenburg Airport will be one of the 15 busiest airports in Europe, seeing 34 million passengers annually.

INFRASTRUCTURE

Europe’s Centre

• With a majority of the continent only a 3 hour plane ride or 24 hour car journey from Germany, the country is Europe's geographical centre

• 50% of the EU population lives within 500km of Germany’s borders

BERLIN

Tegel

Mitte

Dahlem

Lichtenberg

Treptow-Köpenick

BERLIN BRANDENBURGINTERNATIONAL AIRPORT

BERLIN CENTRALSTATION

BERLIN BRANDENBURGINTERNATIONAL AIRPORT


EINBECKER 47EINBECKER 47

NEW AIRPORT MAP

EINBECKER 47

Cross-country connectivity

• Berlin’s Central Station is the largest train station in Europe with 1,800 trains and an estimated 350,000 passengers a day

• 200 million consumers live within a day’s commute of Berlin

City-wide public transport

• Berlin has the lowest number of motor vehicles per head of any German city, with 317 cars per 1,000 people

HOUSING MARKET

Sources: JLL, CBRE Berlin Hyp (2017), Knight Frank

INTERNATIONAL COMPARISON-

SALES AND RENTAL MARKET-

The profoundly low levels of supply and increasingly high levels of demand have put pressure on Berlin's sales and rental markets, which both have seen consistent growth in recent years.

Home to one of Europe's lowest home ownership rates at 15%, Berlin housing market is also vastly more affordable than other major cities. In the French capital, for instance, a similar purchase price would equate to approximately 50% less floor space, demonstrating the attractive future growth potential in Berlin's market.

Sources: JLL, CBRE, Knight Frank, World Population Review

HOUSING MARKET

CAPITAL GROWTH*

RENTAL GROWTH*

VACANCY RATE*

12.5% 7.1% 1.1%

BERLIN: DEMAND VS. SUPPLY-

Residential completions (RHS) Population (resident registrations (LHS))

*2018 figures

SUPPLY-Berlin's construction activity has been slow to react to the city's sharp population growth. This has led to the housing market being structurally undersupplied, with only 15,670 apartments completed in 2017 and an increasing backlog of at least 84,000 units.

The Secretary of State for Construction and Housing estimates that the city requires 20,000 units to be completed per annum, up to 2030, in order to meet the demand.

A booming economy and continued population growth remain the primary demand drivers of the Berlin housing market. Between 2006-2017 Berlin's population grew by over 360,000 and is forecast to rise by another 200,000 by 2030.

DEMAND-

16 17Computer generated images are intended for illustrative purposes only

Einbecker 47 brings modern convenience to one of the greenest areas of Berlin. Providing easy access to the best of Berlin's education, employment, and recreation hubs, the development is set in the tranquil East Berlin neighbourhood of Lichtenberg, near the famous 400-acre Tierpark.

THE DEVELOPMENT

EINBECKER 47

18 19

6min / 16min

9min / 23min

AMENITIES

1

1 Richter's Bakery

2 Chanti Hair Salon

EINBECKER 47

TRANSPORT LINKS

1 Berlin-Lichtenberg U-Bahn / S-Bahn Station

EMPLOYMENT NODES

EDUCATION

1 Leibniz Institute for Zoo and Wildlife Research

2 HWR Berlin School of Economics and LawLichtenberg Campus

6min / 2 min

1 Mediaspree (Warschauer Str. Station) 20min

1min

1min

14min / 28min

3 HTW University of Applied Sciences Berlin

4 Catholic University of Applied Social Sciences Berlin

10min / 15min

3 Supermarket 2min

4 Lichtenberg Pharmacy 7min / 2min

5 Quelle Bar 7min / 2min

6 Post O�ce 10min / 3min

7 Lichtenberg General Hospital 15min / 6 min

8 Tierpark Zoo Berlin 20min / 7min

10min / 5 min2 Tram Station

6min3 Tram Station

AREA MAPAREA MAP

THE AREA

FRIEDRICHSFELDE

RUMMELSBURG

WEITLINGKIES

GISELHERSTEIG

LandschaftsparkHerzberge

Märkische A

llee

Mar

zahn

er C

haus

see

Allee der Kosmonauten

Magdalenenstraße

Einbecker Str.

Skandinavische Str.

Alt-Friedrichsfelde

Gensinger Str.

Buchberger Str.

Vo

lkra

dst

raßeLückstraße

Hauptstraße

Liebesinsel

Kratzbruch

Sewanstraße

Robert-Siewert-Straße

Treskowallee

Wei

tlin

gst

raße

Zachertstraße

Massower Str.

Rosenfelder Ring

Münsterlandstraße

Leopoldstraße

Margaretenstraße

Wön

nich

stra

ße

Met

astr

aße

Arc

henh

olds

traß

eLi

ncol

nstr

aße

Mar

ie-C

urie

-Alle

e

Rüdigerstraße

Josef-Orlopp-straße

Bornitzstraße

Rus

cher

stra

ße

Gotlindestraße

Am

Tierpark

Rummelsburger Str.

Cemetary

CemetaryLICHTENBERG

Zoo

Rhi

nstr

aße

3

5

8

124

6

3

7

1

2

1

1

2

34

1

The leafy district of Lichtenberg in East Berlin boasts beautiful parks, independent eateries and increased affordability than its more gentrified neighbouring areas. Once dominated by young families, the area is fast becoming the new place-to-be for Berlin's young professionals, students and creatives.

With thousands of students across four educational institutions, Mediaspree and convenient transportation links all close at hand, Lichtenberg boasts the perfect combination of metropolitan accessibility and local neighbourhood atmosphere.

20 21

BERLINTegel

Mitte

Dahlem

Lichtenberg

Treptow-Köpenick



EINBECKER 47Avg 31 sqmAvg EUR7,573 psqm

L85Avg 28 sqmAvg EUR9,650 psqm

56Avg 40 sqmAvg EUR9,454 psqm

THE ONEAvg 42 sqmAvg EUR8,741 psqm

WAVEAvg 38 sqmAvg EUR7,956 psqm

PUREAvg 58 sqmAvg EUR8,717 psqm

QUARTIER CWAvg 37 sqmAvg EUR8,303 psqm

LUISE11Avg 27 sqmAvg EUR9,006 psqm

1 km

COMPARABLES MAP

For more information, please speak to one of our consultants.

Computer generated images are intended for illustrative purposes only

THE DEVELOPMENT


THE DEVELOPMENT

26 27

SPECIFICATIONS

SPECIFICATIONS-

HOW MUCH WILL MY PROPERTY INCREASE IN VALUE?

Illustrative propertyvalue (EUR)

Capital appreciation (%) Annual growth

0 1 2 3 4 5 6 7 8 9 10

ILLUSTRATIVE PROPERTY VALUE 171,000 191,007 212,237 232,289 250,943 268,073 283,626 297,614 310,090 321,140 330,866

CAPITAL APPRECIATION - 11.7% 24.1% 35.8% 46.8% 56.8% 65.9% 74.0% 81.3% 87.8% 93.5%

ANNUAL GROWTH 0 11.70% 11.12% 9.45% 8.03% 6.83% 5.80% 4.93% 4.19% 3.56% 3.03%

ILLUSTRATIVE RETURNS MODEL

DISCLAIMER:

Any information (including any data, pictures, graphics, and analysis) included in this and other documents is provided by IP Global Limited (“IPG”) to you pursuant and subject to IPG’s terms and conditions including those specified in the Client Deed. The information provided by IPG is intended solely as a guide and for information purposes and does not constitute an offer or an acceptance to invest. You are strong advised to seek independent tax, legal and financial advice to your satisfaction before making any investment decision. IPG does not and cannot guarantee |the accuracy of the information. You should not rely on such information as your sole means of making a decision. IPG representatives only work in relation to properties outside Hong Kong and are not therefore licensed under the Estate Agent’s Ordinance to deal with Hong Kong properties. IP Global is the trading name of IP Real Estate Investments Pte Ltd (CEA License Number: L3010023I) which is licensed under the Estate Agents Act 2010 of Singapore.

WARNING: Property values and rental yields can fall as well as rise.

Price (EUR) Capital appreaciation (%)

Co

nst

ruct

ion

Einbecker 47 is a new-build boutique micro-apartment residence that redefines modern living, boasting a timelessly designed façade and considered details throughout.

INTERNAL DETAILS Underfloor heating and oak parquet flooring throughout units.

Large triple-glazed windows and terrace doors provide a wealth of natural light while ensuring that the units remain warm and quiet throughout the year.

Gira Video Intercom System.

BATHROOM Modern bathrooms feature timeless design details, light grey tiling and sanitary elements from Villeroy & Boch, Groche and Geberit.

COMMON AREAS Underground facilities include a communal laundry room with 5 washer/dryer units, cellar storage room for every apartment and a 40 bicycle parking area.

EXTERNAL DETAILS Terraces, balconies and a ground floor community garden extend the residence’s living space into the outdoors.

KITCHEN Each unit features a fully fitted kitchen with an oven, cooking hobs, an integrated fridge freezer, and washing machine where space allows.

All appliances provided by BEKO and Zanussi.

28 29

WHAT WILL MY GROSS RENTAL INCOME BE?

1 2 3 4 5 6 7 8 9 10

RENTAL INCOME 8,400 8,959 9,495 10,006 10,491 10,949 11,379 11,781 12,156 12,504

RENTAL YIELD 4.9% 5.2% 5.6% 5.9% 6.1% 6.4% 6.7% 6.9% 7.1% 7.3%

10-year gross rental income: EUR106,120

DISCLAIMER:



Rental income Rental yield


Rent (EUR) Rental yield (%)

10-YEAR PROFIT

Property price at purchase: EUR171,000

Property value at sale (year 10): EUR330,866

LTV: 70% (EUR119,700)

Mortgage interest rate: 2.90% (25 years)

10-year gross profit: EUR265,986

Rental income: EUR106,120

Capital appreciation: EUR159,866

Gross profit: Rental income and capital appreciationNet profit: Gross profit minus acquisition costs, running costs, mortgage costs and tax liability

Pro

fit

RETURNS MODEL

DISCLAIMER:




Net profit Balance of profit

GROSS PROFIT

30 31

DEVELOPER

OSKAR & HELENEBERLIN

50 units

CARRÉ VOLTAIREBERLIN

127 units

One of Berlin's most well-renowned real estate developers, Diamona & Harnisch create high-quality living spaces,

combining modern design with energy-efficient, pragmatic architecture. Since 2008, the company has been one

of Berlin's leading project developers, boasting a core development team with more than 100 years of combined

experience in Berlin real estate development. Over 900 apartments have been developed by Diamona & Harnisch

since their establishment.

www.diamona-harnisch.com

DISCLAIMER

Please note: floor plans, prices and images are for information purposes only and are subject to change from time to time. Areas shown are approximate measurements. You acknowledge that: (i) the information contained in this document and such other material issued in connection therewith (the “Content”) are provided for information purposes only and will not be regarded as advice on securities or collective investment schemes or other financial or investment advice; (ii) the Content is not intended for the purpose of advice, dealing or trading in securities or collective investment schemes; (iii) the Content may include certain information taken from property surveys, stock exchanges and other sources from around the world; (iv) the Content is provided on an “as is” basis and by way of a summary and we do not guarantee the accuracy, completeness, or timeliness of the Content; (v) the Content may be subject to the terms and conditions of other agreements to which we are a party; (vi) none of the information contained in the Content constitutes a solicitation, offer, opinion, or recommendation by us to buy or sell any security, or provision of legal, tax, accounting, or investment advice or services regarding the profitability or suitability of any security or investment; (vii) you should not rely on the Content as the sole means of making any investment decision relating thereto and you should seek professional, independent and specific advice on any such investment decision; (viii) the property market is volatile and illiquid and property prices and rental yields may fluctuate widely or be affected by a broad range of risk factors; (ix) all plans and specifications in the Content are intended as a guide only and are subject to such variations, modifications and amendments as may be required by the relevant authorities or the relevant developer’s consultants or architects; (x) all renderings and illustrations in the Content are artists’ impressions only and all measurements are approximate subject to final survey and confirmation; (xi) the Content is not intended for use by, or distribution to, any person or entity in any jurisdiction or country where such use or distribution would be contrary to law or regulation; and (xii) the Content has not been authorised or approved by the Securities and Futures Commission of Hong Kong or any regulatory body of competent authority whether in Hong Kong or elsewhere. Accordingly, you assume all responsibility and risk for reliance upon and the use of the Content and, we, our agents, directors, officers, employees, representatives, successors, and assigns expressly disclaim any and all responsibility for any direct or consequential loss or damage of any kind whatsoever arising directly or indirectly from: (i) the use of the Content, (ii) reliance on any information contained in the Content, (iii) any error, omission or inaccuracy in any such information including, without limitation, financial data, forecasts, analysis and trends, or (iv) any action or non-performance resulting from the foregoing. This exclusion clause shall take effect to the fullest extent permitted by applicable laws.

PROFESSIONAL ADVICE Any statement contained in the Content is made on a general basis and we have not given any consideration to nor have we made any investigation of the investment objective, financial situation or particular need of any user or reader, any specific person or group of persons. You are advised to make your own assessment of the relevance, accuracy and adequacy of the information contained in the Content and conduct independent investigations as may be necessary or appropriate for the purpose of such assessment including the investment risks involved. You should consult an appropriate professional advisor for legal, tax, accounting, or investment advice specific to your situation, as to whether any governmental or other consents are required or if any formalities should be observed for the purposes of making such investments as are mentioned in the Content. If you are unsure about the meaning of any of the information contained in the Content, please consult your financial or other professional advisor.

THIRD PARTY REFERENCES References to third party publications are provided for your information only. The content of these publications are issued by third parties. As such, we are not responsible for the accuracy of information contained in those publications, nor shall we be held liable for any loss or damage arising from or related to their use.

berlin - holborn assets property · 2019-06-17 · 15%, berlin housing market is also vastly more...

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